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Pharos Energy, an independent oil and gas exploration and production company, has announced its interim results for the six months ended 30 June 2023 

Jann Brown, CEO, commented, "The first half of the year has been marked by strong operational performance. In Egypt, The first exploration well drilled on the NBS concession was successful and efforts are underway to secure approval for production to commence in 4Q this year. An exploration well in a new zone of the main producing asset in Egypt, El Fayum, has also been successful. 

"Capital is being allocated carefully to reflect the economic situation. In the short term, we continue to be supported by the terms of the deal struck with IPR, with full carry plus the oil price based contingent consideration, the first payment for which we received in June. Looking to the future, the potential of our Egyptian assets has been enhanced with exploration successes delivered this year."

Production in Egypt remained at 1,349 bopd (1H 2022: 2,101 bopd, working interest 100% up to 21 March 2022). It has been stable in the first half of the year underpinned by a small development drilling campaign plus a focus on workovers, recompletions, and water injection to bring low-cost barrels to production and build reservoir energy for future drilling. Four development wells and one exploration commitment well were drilled in the El Fayum concession in 1H 2023.

The first exploration commitment well in the El Fayum Concession encountered oil-bearing reservoirs in the Abu Roash G and Upper Bahariya formations. The well will be tested to confirm deliverability using one of the workover rigs. The first exploration commitment well in the North Beni Suef Concession (NBS-SW1X) was declared a commercial discovery after encountering multiple pay zones in the Abu Roash G formation. The stabilised production test rate pre-frac is 470 bopd (gross). The operator has requested approval from the regulator for the grant of the NBS Development Lease with a view to starting commercial production in 4Q 2023.

Acquisition of 130 sq km of additional 3D seismic at NBS is completed and a second well will be drilled this year.

Egypt's 2023 production guidance narrowed to 1,350-1,450 bopd net from 1,350-1,800 bopd net. Additional workover and waterflood projects are to be completed in 2H 2023. NBS first commitment well is targeted to be on production in 4Q 2023.

Second exploration commitment well on NBS is expected to be drilled this year. The net zero roadmap is to be published in 4Q 2023.